In July, 300 layoffs were still being talked about: the traditional Rieter company had to lay off up to 900 people

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Rieter needs to pick up the red pen. The spinning machine manufacturer announced comprehensive layoffs of around 300 people in July. Significantly more jobs are now expected to be cut. This is because the order is still in bad condition.

“Due to the current market situation, further market and volume-related adjustments are necessary,” Rieter said in a statement on Friday. This means 400 to 600 jobs will be lost, primarily in manufacturing. How high the actual reduction will be depends on the further development of orders.

Up to 900 job losses in total

This could result in the loss of a total of up to 900 jobs at the Winterthur-based group. In July, it was announced that approximately 300 people were laid off, especially in management positions in Winterthur and Ingolstadt, with the reference that another 400 to 600 people could be laid off. At mid-year Rieter employed 5,555 people worldwide. Consultations with employee representatives in Winterthur and Ingolstadt have been completed and most of the redundancies there will take place by the end of the year.

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Rieter’s order situation remains weak: In the first nine months, sales rose 11 percent to 1.09 billion francs, but incoming orders fell 58 percent to 452.2 million francs. Analysts had expected a less significant decline.

It was stated that the demand for new machines, in particular, collapsed worldwide, except for China, and the trade in components and spare parts weakened due to the decrease in use in spinning mills. Rising interest rates and high energy and raw material costs create an additional burden.

The decline is not surprising

The decline is no surprise; analysts had expected this after orders had already collapsed in the first half of the year.

Meanwhile, the group is sticking to its targets for the whole year: Rieter wants to achieve sales of around 1.5 billion francs, approximately at the level of the previous year. (SDA/lui)

Source :Blick

Tim

I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.